Before the advent of financial technology (fintech), traditional accountancy roles focused primarily on manual data entry and record-keeping, which was time-consuming and not without risk. The frequency at which an accountant could give advice to their clients was also restricted to monthly, quarterly, or even yearly financial statements, leaving large periods during which lucrative opportunities could be missed.

When we consider recent accounting service statistics that reveal up to 75% of the day-to-day tasks an accountant needs to complete can now be automated with accounting software, it is easy to grasp how important the embrace of fintech has become for finance professionals. The skills of Technology literacy (57%), relationship building (46%), and business advisory (44%) are also now listed as ‘vital skills a 21st-century accountant must possess.’

Fintech apps now give accountants and their clients access to real-time financial data. These apps help finance professionals act more as advisors and less as bookkeepers. Let’s explore how fintech is changing accounting and its benefits for both accountants and clients.

Impact of Fintech and Automation on Accounting

Accountants who haven’t yet moved to online bookkeeping are missing out on many benefits, especially the time saved by automating routine tasks. Fintech advances have allowed modern accounting firms to move away from manual data entry. Instead, they can spend time improving services and client relationships.

Automating Routine Tasks: The most time-consuming and error-prone accounting tasks, like bank reconciliations, invoice processing, and data entry, no longer need an accountant’s full attention. Automation not only reduces human error, but Artificial Intelligence and Machine Learning also help maintain financial data efficiently, completing tasks instantly and in real-time. For example, financial management software can categorise expenses and reconcile bank statements, eliminating the need for manual entries.

Fintech Solutions in Accounting: Fintech solutions have helped the financial sector innovate in more ways than just data automation. Advancements in cloud accounting software have meant accountancy firms now have access to real-time financial reporting and analysis that is accessible remotely and globally. Firms can now connect to their clients flexibly and, with access to more live information than ever before, can help them to make informed financial decisions regardless of their location or the timezone.

As technology improves, more accountancy tasks will be moved to automated systems, which should be seen as a useful boon to finance professionals as opposed to a threat. This means accountants can dedicate more time to advisory roles, allowing them to grow into the status of strategic planner, forecaster, and consultant. Number accuracy will also be more reliable, which should grant both accountants and their clients a deeper trust in the advice they are giving and receiving.

The Accountant as a Strategic Advisor

The ongoing advancements in fintech are transforming accountants from the traditional number crunchers of yesteryear into strategic advisors, pivotal to the financial decision-making processes of their client’s businesses. We have touched on the subject, but below is a deeper look at some of the processes accountants are capable of aiding clients with due to the increasingly rich data that fintech produces:

Leveraging Data Insights: Big data, combined with ML, AI, and predictive analytics, grants accountants access to comprehensive financial data sets that can be used to deliver unique business advice. Access to real-time numbers also means advice is based on active circumstances, which should bolster the accountant’s confidence in their ability to tailor financial recommendations and give reliable advice on metrics, from cost reduction strategies to revenue optimisation across the board.

Strategic Financial Planning: Financial data forecasts also help accountants reliably predict trends, improving budget prep and readying their clients for a multitude of typical financial scenarios. For instance, when faced with a potential investment or expansion opportunity, an accountant who has access to deep financial insights can guide their client towards making a well-informed choice. This guidance can prevent unnecessary expenditures or deter decisions that might not be advantageous, especially if more urgent financial obligations require attention.

With the wealth of data available today, accountants have the opportunity to become efficient at not just assessing potential business risks, but also identifying growth opportunities. By evaluating market conditions and historical financial data, accountants can increase their impact on a client’s success, making them indispensable partners in strategic decision-making.

Using Fintech Tools for Personalised Client Engagement

There is a plethora of fintech platforms on the market today, so selecting the right accounting software is important for both finance professionals and their clients. The continued adoption of fintech tools into accounting practices has allowed accountants to greatly enhance the services they provide, and they should not forget to help their clients in making an informed choice regarding open accounting and open banking. It can ultimately help in their ability to fulfil the position of advisor in a proactive partnership.

Tailored Advice and Anticipating Needs: There is a variety of fintech platforms that can equip accountants with real-time predictive analytics. From popular brands like QuickBooks to more community-driven open-source bookkeeping techs that offer businesses access to tailor-made solutions that are relevant to running in-house operations on a daily basis. For accountants, this means a client’s needs can be anticipated through identifying emerging trends, spotting potential issues through analytics, and advising on opportunities using solid, up-to-date financial data.

Proactively Addressing Financial Challenges: Fintech tools also allow accountants to establish notifications for important financial markers, meaning they can take proactive measures in dealing with their clients’ issues before they become significant. This might involve any number of financial metrics, from tax strategies and cash flow management to market adaptions or product plans. By being proactive rather than reactive, an accountant can help their clients innovate and remain ahead of the curve where their finances are concerned.

Skills and Knowledge for the Modern Accountant

While the fintech tools for accountants are there and waiting to be embraced, the transition from traditional data entry to a strategic advisory role with fintech at the heart of operations naturally requires a skillset expansion. This may require that an accountant trains to expand their knowledge base and should not be shied away from. Fintech innovations are the future of financial management, so embracing the learning curve should be welcomed.

New Skill Sets for Strategic Advisory: Learning to analyse and interpret data will help accountants understand their clients’ financial numbers and what they mean for the business. As technology improves, accountants need to get better at strategic planning, risk management, and financial forecasting. These skills, along with the detailed data from fintech, are becoming crucial. Clients now expect accountants to not only understand financial information but also explain it clearly and convincingly.

Continuous Learning and Adaptation: It’s important for accountants to stay up-to-date with the technology they use, including new regulations and financial management methods. This helps accountants keep themselves and their clients informed about changes that could affect their finances. This may include new rules they need to know by law. Many well-known fintech companies offer plenty of resources, such as webinars and forums. Accountants can also talk with developers and other users to help make sure they understand and can use new accounting tools.

By embracing new competencies, accountants can enhance their value to clients while staying ahead of any competition that does not take the inevitability of change so seriously. The gap will continue to grow as tech innovates further, and maintaining a grasp on how fintech is improving will ultimately ensure you can provide accounting services that the competition cannot.

Parting Thoughts

Fintech will continue to revolutionise the role that accountants take for their clients, and it has mostly been facilitated thanks to the automation of once routine tasks, giving way to automated, real-time financial data, void of human error, that enables accountants to focus on providing proactive, valuable strategic insights, as opposed to reactive advice based on outdated information. By embracing these technological advancements, accountants can position themselves to give more impactful advice tailored to the unique needs and goals of their clients.

The large-scale integration of fintech tools in accounting practices underscores a new approach to client engagement and financial management, where accountants can use the data from fintech providers to anticipate challenges and capitalise on opportunities, strengthening the accountant-client relationship and cementing the accountant’s role as an essential strategic partner in the modern business landscape.

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